Joint European Police Raids on Benko in Austria, Italy, and Germany
In one of the largest cross-border raids in recent years, an international team of investigators has taken action against the imprisoned former real estate mogul René Benko and his Signa empire. Officials from Austria, Germany, and Italy simultaneously searched dozens of properties - including the Tyrol department store in Innsbruck, the Signa headquarters in Vienna's Palais Ferstel, and several warehouses and foundation offices.
Raids were also carried out at Palais Ferstl in Vienna's Herrengasse and at the same time at other Signa offices in Vienna, Innsbruck, Bolzano in Italy, and other locations. / Picture: © aurena.at
This is due to serious allegations that are now becoming increasingly clear, as the Austrian magazine “Profil” reports: The Italian anti-Mafia public prosecutor's office in Trento suspects Benko of having been at the head of a “mafia-like criminal organization”. This is alleged to have obtained public contracts, concessions, and political influence through systematic corruption and deception. For South Tyrol alone, the Italian judiciary cites alleged bribe payments amounting to 500,000 euros in connection with the 2018 regional elections and several municipal elections, including the “Gries Village” urban development project in Bolzano.
Access to data since 2013 - Europe-wide coordination
The investigations cover a period of more than a decade, as the Austrian newspaper “DerStandard” reports. According to the available documents, the search included passwords, personal notes, data sticks, and internal communications - all in the period from January 1, 2013, to the present day. The Italian public prosecutor's office requested its measures on the basis of many years of undercover investigations, including wiretapped telephone conversations and surveillance.
On the Austrian side, the Economic and Corruption Prosecutor's Office (WKStA) coordinated the operations, which were approved by the Vienna Regional Court. They were supported by the SoKo Signa of the Federal Criminal Police Office. The Munich public prosecutor's office I was also significantly involved: In Germany, Benko is suspected of embezzlement and subsidy fraud in addition to fraud.
Munich major project “Franz” in the sights
The German investigators are focusing in particular on the so-called “Franz” project in Munich - officially known as “Corbinian”, as "profil" reports. Benko and his managers are alleged to have deceived investors, including the Saudi Public Investment Fund (PIF), with false information for the planned new building on Bahnhofplatz. 187 million euros are said to have flowed in 2022 under the assurance that they would be used for the Munich construction project. It is suspected, the money was immediately diverted to other Signa projects. On the day the money was received alone, 180 million euros were said to have been transferred internally, a suspected misappropriation in the hundreds of millions.
Another example: a potential buyer from Thuringia transferred 120 million euros as proof of financing for a purchase that never took place. The sum also disappeared within the Signa Group. The result: the German project company filed for bankruptcy - the loss remained with the investor.
Italian accusations run deep
The allegations also run deep in South Tyrol, as the “DerStandard” reports. The public prosecutor's office in Trento speaks openly of a corrupt network infiltrating the administration. Projects in Bolzano, such as the Waltherpark, a student dormitory, the airport, and the new museum building around the glacier corpse “Ötzi” are among those named. According to investigators, confidential information on tenders is said to have been obtained in advance through gifts and influence peddling.
According to the Italian authorities, the South Tyrolean tax consultant Heinz Peter Hager - chairman of the Laura Private Foundation named after Benko's daughter - played a central role in this. This foundation is now also in the spotlight: its offices have been searched, with possible hidden assets of up to 200 million euros at stake. The foundation itself has so far only formally acted as a witness - a popular construct in Benko's circle.
Arrest remains in place - extradition refused
Benko, who has been in custody since January 2025, was again refused release shortly before the raids. The judiciary still considers there to be urgent suspicion and a risk of flight. The Italian extradition request was finally rejected in December 2024, with reference to Benko's Austrian citizenship and the constitutional extradition protection regulation.
A crumbling empire and a legal minefield
While liquidators are trying to untangle the complex web of companies, international partners of the Signa Group are now also coming under investigation. In their sights: possible accomplices, shifted billions, and a power structure that was able to operate unchallenged for years. For Austria, Italy, and Germany, the Benko affair has long been more than just a spectacular corporate shake-up. It is a test case for dealing with systemic white-collar crime in the 21st century. The presumption of innocence applies to all defendants.